French MPs reject $4B revenue measure in social security budget

French lawmakers on Thursday rejected a measure expected to raise €3.7 billion ($4.1 billion) for the social security system, undermining the government's efforts to narrow its deficit, the BFMTV broadcaster reported.

The provision in the 2027 social security financing bill would have reduced employer contribution relief for companies paying profit-sharing or employee share ownership bonuses.

MPs subsequently rejected Article 7, which contained the measure, following three days of debate marked by votes reducing projected revenue or adding spending.

“You're killing this Social Security Financing Bill,” said Socialist lawmaker Jerome Guedj, accusing fellow MPs of jeopardizing efforts to restore the system’s finances.

Lawmakers from President Emmanuel Macron’s camp and the right supported amendments that removed the provision, which opponents considered harmful to businesses.

Labor Minister Jean-Pierre Farandou warned about the financial effect of lawmakers’ proposals.

“We're no longer talking about the 15 million or 100 million we were discussing yesterday, we're talking about billions of euros,” he said.

Green lawmaker Sandrine Rousseau raised the prospect of a no-confidence motion, accusing opponents of abandoning previously agreed compromises.

The government wants to reduce the social security deficit from an expected €21.8 billion in 2026 to €12.7 billion in 2027.

Rejection of the entire revenue section would prevent lawmakers from proceeding to examine the bill’s spending provisions, according to the report.